" I have an 81 380sl that tends to run hot in the summer, and I heard that water is a much better coolant than anti-freeze. So I was wondering if diluting my coolant would cause my car to to run cooler in hot weather. "
IMO, any diff in cooling capacity will be minimal. Instead you will lower the boiling point and increase corrosion. Why don't you find out why it's running hot. Bad theromostat? Collapsing hoses? Plugged radiator?